IN THE COURT OF THE ADDITIONAL CIVIL JUDGE (JUNIOR DIVISION)
GURAZALA
PRESENT Sri K.V.V. SATYANARAYANA,
Additional Civil Judge (Junior Division), Gurazala.
Tuesday, this the 27th day of August, 2024.
C.C.No.312/2019
Between: -
Andugula Ashok Kumar, S/o.Saiman, Age 45 Years, R/o.Gurazala Village and Mandal, Guntur District… Complainant
And
Gidutoori Srinivasa Rao, S/o.Babu Rao, Age 43 Years, Copyist in Work review Section, First Floor in High Court, Nalapadu, Amaravathi, Guntur District. … Accused
This case is coming before me on 22-08-2024 for final hearing in the presence of Sri Ch.Koteswara Rao, learned counsel for the Complainant and of Sri D.Kiran Das, Learned Advocate for the Accused and on hearing both the sides, this matter having stood over for consideration till this day, this Court delivered the following:
J U D G M E N T
01.This is private a complaint filed by the complainant against the accused for the offence under sections 138 of Negotiable Instruments Act (NI Act).
02.The contents of the complaint in brief are that: The accused had borrowed an amount of Rs. 5,00,000/- form the complainant on 07-08- 2016 for his family expenses and executed a promissory note in his favour, unconditionally undertaking to repay the same together with interest @ 24% per annum and upon repeated demands made by the complainant personally and through mediators, on 23-02-2019, the accused had issued a cheque bearing No. 538426 for Rs. 7,50,000/- drawn on State Bank of
India, High Court, Hyderabad in favour of the complainant, towards part satisfaction of the total debt due. The said cheque was presented by the complainant on 26-03-2018 for collection, through his banker, State Bank of India, Gurazala and the same was dishonoured on the same day for insufficiency of funds to the credit of the accused’s bank account.
Subsequently, the complainant got issued a statutory legal notice to the accused, through his counsel, on 28-03-2018 and the same was served on the accused on 30-03-2019 and that the complainant, after waiting for the statutory period of 15 days, filed this complaint on 29-4-2019, with in the limitation prescribed under section 142 of NI Act, 1881.
03.After recording the sworn statement, the case was taken cognizance of against the accused and summons were issued. On appearance of accused, copies were furnished to him and was examined under section 251 Cr.P.C by explaining the substance of accusation against him under section 138 NI Act, to which he denied the offence, pleaded not guilty and claimed to be tried.
04.During trial, the complainant examined himself as P.W 1 and got Ex.
P1 to P6 Viz., Cheque for Rs.7,50,000/-, dated 23-02-2019, drawn on
State Bank of India, High Court, Hyderabad, by the accused in favour of the complainant; Counter Foil Dt. 26-03-2019; Cheque return memo,
dated: 26-03-2019 issued by State Bank of India, Gurazala; Office Copy of
legal notice, dated: 28-03-2019; Postal acknowledgement card; Original
Promissory Note for Rs.5,00,000/- dated 07-08-2016 executed by the accused in favour of the complainant, marked in his favour and got examined on Ambati Papa Rao, who is the scribe of Ex. P6 as P.W 2 and prosecution evidence is closed. This court then examined the accused under section 313 of Cr.P.C for the incriminating circumstance appearing against him in the prosecution evidence to which he denied and reported that he has evidence in his defence. He examined himself as D.W. 1 and
Ex. D1 to D5 Viz., Roc.No.346/PIO/JUDL/RT1/2022, dt. 26-9-2022/issued by SPIO(Judicial)APHC, Photo copy of Letter to Deputy Registrar cum
Drawing Officer, Hon'ble APHC, dt. 2-3-2023, Certificate issued by Deputy
Registrar cum Drawing and disbursing officer, Hon'ble High Court of
Andhra Pradesh, Amaravathi dt: 21-3-2023, Acknowledgment of request letter by the accused and addressed to the Hon'ble Registrar (Vigilance),
APHC, AMARAVATHI, dt. 25-3-2023 and Certificate issued by Deputy
Registrar cum Drawing and disbursing officer, Hon'ble High Court of
Andhra Pradesh, Amaravathi dt. 1-4-2023 were marked in his favour and the defence evidence is closed.
05.Now, the points for determination are:
1. Whether there exists a legally enforceable debt between the
complainant and the accused? If so, Whether the accused rebutted
the presumptions under the provisions of Negotiable Instruments
Act, 1881?
2. Whether Ex. P1 Cheque was issued by the accused for discharge of a legally enforceable debt?
3. If so, Whether the statutory notice issued by the complainant is
served on the accused to attract the liability under section 138 NI
Act?
4. Whether the complainant proved the guilt of the accused beyond
reasonable doubt for the offence punishable under Secs.138 and 142
of Negotiable Instruments Act, 1881?
06.Heard the counsels for the complainant and the accused.
07.The counsel for the complainant submitted that, the cheque was issued towards part satisfaction of legally enforceable debt and that as the accused admitted his signatures on Exs. P1 and P6, presumptions can be drawn in favour of the complainant. He further submitted that the notice issued was served on the accused on 29-03-2019, but it was mistakenly mentioned as 30-03-2019 in the complaint and that the same was admitted by the accused in his cross examination and hence, the accused is liable to be punished.
08.The counsel for the accused submitted that Ex. P6 is from
Hyderabad, and it has a receipt attached, and the same shall be with the accused if the accused had executed the same and that the same was admitted by PW 1 in his cross examination and that the accused never had any acquaintance with the complainant and that the alleged cheque and promissory note were given by the accused to the counsel of the complainant, in connection with a chit transaction. The defence counsel stressed on the contention that the legal notice, alleged to have been issued by the complainant was never received by the accused and substantiated his argument by stating that the alleged date of service i.e., 30-03-2019 is a Saturday and the same is a holiday for the staff working under Hon’ble High Court of Andhra Pradesh Registry and relied on Ex. D1 to D5.
Point No. 1: Whether there exists a legally enforceable debt between
the complainant and the accused? If so, Whether the accused
rebutted the presumptions under the provisions of Negotiable
Instruments Act, 1881?
09.On perusal of the material on record and the evidence adduced, it could be seen that Ex. P1 cheque was issued in discharge of the debt due under Ex. P6. D.W1, in his cross examination, admitted that the signatures on Exs. P1 and P6 belong to him and he signed the said documents. The making of Ex.P6 promissory note is undisputed and the said note was made on 07-08-2016 and the same is not barred by limitation. Hence the it could safely be concluded that, there is a legally enforceable debt between the complainant and accused.
10.The primary defense of the accused is that he has no acquaintance with the complainant and that he never executed Ex. P4 nor issued Ex. P1 cheque to the complainant. Complainant admitted that he has no direct acquaintance with the accused and that he is acquainted to him through his counsel, AKKR. It is the burden of the accused to show how, the cheque and promissory note went into the hands of the complainant. To substantiate his allegation, he deposed that, he has acquaintance with one
Kishore Reddy, advocate at Hon’ble High Court of AP, and he issued two blank signed cheques to the said Kishore Reddy along with Ex. P1 cheque as a security in relation to a chit transaction and that he learnt after receipt of the summons in this case that the said Kishore Reddy is a native of
Gurazala and that the complainant and the attestors of Ex. P6 are all residents of nearby villages and that the said Kishore Reddy in collusion with the complainant got this case filed against him. However, except the oral deposition, he did not file even a scrape of documentary evidence in support of his case, neither he examined any other participant of the chits as alleged by him. It was elicited in his cross examination that the said
Kishore Reddy @ AKKR, who is the counsel for the complainant, did not conduct chits and that he used to run chits in the name of his brother-in- law and that he discharged the entire chit transaction amount. Contra to his contention, in his re-examination, he deposed that he is ready to settle the matter with the said AKKR, but not with the complainant. Moving further, it is the allegation of the accused that he had not received the statutory notice got issued by the complainant and that if at all he had received the same, he would have issued a reply to the same, being an educated person and having knowledge of legal proceedings. This gives rise to the question what happened to his legal knowledge in case of demand for return of the cheques issued to the said AKKR, if he had discharged his liability under chit transaction. Though, the fact of alleged chit transaction is not relevant, it is essential to have a look about the statements of accused to know about the veracity of his evidence. In his cross-examination, initially he stated that he discharged the chit liability, but at a later stage he stated that, he did not get any legal notice issued to the said AKKR to return the blank signed cheques. Being a person with legal awareness, as contended by him, he must have issued a notice to said AKKR, to return the cheques, if he had discharged the liability.
11.It is further argued that Ex. P6 is not in usage, in Andhra Pradesh and that it is in use in Hyderabad and that the receipt which is with Ex. P6 shall be delivered to the accused, and the same version is supported by the deposition of PW. 1, where he admitted that, in general the receipt of the promissory note shall be in possession of the debt and he further said that, accused failed to collect the same. However, non-delivery of receipt cannot be considered to be fatal to the complainant’s case, as it is the duty of the accused to collect the same and moreover, when the signature on the promissory note is admitted, it can no way effect the presumption drawn.
From the above discussion I am of the considered view, that the accused failed to rebut the presumption drawn in favour of the complainant under section 139 NI Act.
Point No. 2: Whether Ex. P1 Cheque was issued by the accused for
discharge of a legally enforceable debt?
12.The next question to be answered is interdependent on point no. 1.
There is clear admission of signatures on Ex. P1 and P6 by the accused and the same leads to drawing presumptions under section 118 and 139 of
NI Act. This view is supported by the celebrated decision of Hon’ble
Supreme Court of India in the case of Basalingappa Vs. Mudibasappa (2019), where it was concluded that “Once the execution of cheque is
admitted Section 139 of the Act mandates a presumption that the
cheque was for the discharge of any debt or other liability”. With the help of above decision, the 2nd point too is answered in favour of the complainant and the accused.
Point No. 3: If so, Whether the statutory notice issued by the complainant is
served on the accused to attract the liability under section 138 NI Act?
13.Extensive arguments have been advanced on this point by both the counsels. It is an admitted fact that the accused is an employee working in the High Court of Andhra Pradesh. It is the case of prosecution that the notice was served on accused on 30-03-2019, as per the averments in the complaint. The same was the evidence of the complainant as P.W 1.
During the cross-examination by defence counsel, P.W. 1 denied the suggestion that, the legal notice Dt. 28-03-2019 was not serve on the accused on 30-03-2019, as the said day was a public holiday to the
Hon’ble High Court of Andhra Pradesh and the accused was not on duty.
In order to prove his contention, the accused obtained Ex. D1 to D5, and as per Ex. D1, the Hon’ble High Court was working only for 5 days a week (i.e., Monday to Friday) till 29-10-2019 and the employees will have duties on rotation basis and Ex. D5 shows that the accused was not on duty on 30-3-2019. It was further alleged that the counsel for the complainant, being a practising advocate in High Court of Andhra Pradesh, managed to get Ex. P5 postal acknowledgment as served. The prosecution took a turn in its case and then started alleging that the notice was actually served on 29-03-2019 and it was mistakenly mentioned in the complaint as the same was served on 30-3-0219, it was contended that in the cross-examination of D.W. 1, by the complainant’s counsel, he admitted that Ex. P5 bears a stamp and that the date in the stamp, where the accused put his signature is 29-03-2019 only and not 30-09-2019 and that 29th being Friday, he was on duty, but denied the suggestion that he received the said notice on 29th of march 2019.
14.The defence of the accused includes an allegation, that the signature on Ex. P5 does not belong to the accused. He admitted his signature on Ex. P 1 and P 6. To have a clear picture of the case, this court examined Ex. P5. On a careful examination of the stamp beneath the signature of accused on Ex. P5, it could be seen that the date is 29-03- 2019 only and not 30-03-2019. Further, the accused denied the said signature to be his, but on comparing the admitted signatures of the accused on Ex. P1 and P6, an ordinary prudent man could conclude that he said signature on Ex. P5 too belongs to the accused. Hence, I am of the considered view that the fact of receipt of statutory legal notice is proved in accordance with the definition provided for the term “proved” under section 3 of Indian Evidence Act. This view also finds its support from the evidence of D.W 1, wherein he deposed that he was ready to send the said acknowledgement for comparison to an expert, but he did not take any steps towards that end. Hence, adverse inference under section 114
Indian Evidence could also be drawn against the accused and in favour of the complaint’s submission.
15.It is a fact, that the date of delivery of notice according to the complaint is 30-03-2019, but the stamp on Ex. P5 is 29-03-2019 and the same is supported by admission by the accused. Further, from the above discussion as to denial of signature on Ex. P5 and not send of the same for expert opinion and other reasons mentions above leads this court answered this point too, in favour of the complainant and against the accused. Hence, this court is of the view that the service of notice, to the accused is sufficient as required under section 138 of NI Act, to give raise to the cause of action under the Act.
16.This court also considered the allegation by the accused and the admission of the complainant in his cross examination, as to the address to which the legal notice was issued and the address of the accused as shown in Ex. P6. It was stated by P.W. 1, that he got the legal notice issued to the accused to the address, that was mentioned in Ex. P6 and that as on the date of execution of Ex. P6, the accused is working at Joint
High Court for the states of Andhra Pradesh and Telangana, at Hyderabad and that the notice was issued with the address of Hon’ble High Court of
Andhra Pradesh at Amaravathi. As seen from Ex. P6, it does not contain the details at to the High Court of particular state. Thought it was mentioned as “R/o” by the scribe, the details mentioned, Viz., Copyist in
Work Review Section, 1st floor in High Court, it is more as to the occupation of the accused, that the address. It was suggested and denied by P.W 1, that the address mentioned in Ex. P6 is not correct as there is no Copy section in the first floor of the Hon’ble High Court, either at
Hyderabad or Amaravathi. When the notice was delivered to the accused and the same was received, this court is of the view, it is immaterial as to the details of address. However, there might be an interpretation that when the address of accused where he was in the 2019 is mentioned in Ex. P6, which was alleged to have been executed in the year 2016, the date of execution of Ex. P6 may be doubted. But, Ex. P6 does not contain the address where the accused is working in the year 2019, it bears the details of his employment alone, but not the place, except for 1st floor in High
Court. Further, it is not even alleged or submitted by the defence that, the accused is working at the 1st floor of Hon’ble High Court of Andhra Pradesh and thus the Ex. P6 was fabricated with the details of his work place in 2019 and that the said promissory note was not executed in 2016. Thus, even the simple said contention could not support the defence case. Even if the said contention is considered valid for a while, when the execution of
Ex. P6 is admitted, the fillings up of details, subsequently is valid, id done in accordance with section 20 and the same does not amount to material alteration under section 87 of NI Act.
17.Further, as per the decision of Hon’ble High Court of Andhra
Pradesh reported in AIR 2006 Cri. L.J 1, where in it was held that, “40. The mere loss of the demand promissory note or its non- production by itself would not be sufficient to hold that there was no legally enforceable debt. There are no other probable circumstances placed by the accused in the process of discharge of his burden. The failure of the
accused in giving reply to the legal notice issued by P.W. I is one of
the strong circumstances to draw an inference that the accused
borrowed the amount from P.W. 1 and the cheque was issued
towards part payment of the legally enforceable debt.”
Point No. 4: Whether the complainant proved the guilt of the accused
beyond reasonable doubt for the offence punishable U/s 138 and 142 of
Negotiable Instruments Act, 1881?
18.In the cases under 138 NI Act, the initial burden is not the complainant to prove the existence of legally enforceable debt and then the prosecution could have the support of presumptions under sections 118 and 139 of the Act. However, in order to invoke said presumptions, the complainant shall initially establish that the cheque under question was issued towards, discharge of legally enforceable debt or liability. The
Hon’ble Supreme Court in the case of P. Venugopal vs Madan P.
Sarathi, held that “Indisputably, in view of the decisions of this Court in Krishna Janardhan Bhat (supra), the initial burden was on the complainant. The presumption raised in favour of the holder of the cheque must be kept confined to the matters covered thereby. The presumption raised does not extend to the extent that the cheque was issued for the discharge of any debt or liability which is required to be proved by the complainant. In a case of this nature, however, it is essentially a question of fact.”
19.In the case on hand the complainant successfully established that there is a legally enforceable debt and this court invoked the presumptions available in his favour, but the accused failed to rebut the presumption.
20.In view of my above findings and reasons to points 1 to 3, coupled with the oral evidence of Pws.1 and 2 and the documentary evidence produce, the guilt of the accused for the offence under section 138 of NI Act is unequivocally established and this court is of the view that the accused is not entitled to benefit either 360 Cr.P.C or the provisions of Probation of Offenders Act and is liable to be punishmed for the said offence.
21.In the result the accused is found guilty for the offence punishable under
Sec.138 of Negotiable Instruments Act. Accordingly, the accused is convicted for the same under Sec.255(2) and (3) Cr.P.C.
Typed to my Dictation by the stenographer Grade-III, corrected and
pronounced by me in open court, this the 27 th day of August, 2024.
Sd/- Sri K.V.V.Satyanarayana,
Additional Civil Judge (Junior Division),
Gurazala.
22.Heard the accused regarding the quantum of sentence. He pleaded mercy stating that he is a Government employee and has family with two male children and that he is suffering from health issues.
In view of the facts and the circumstances of the case and of the plea taken by the accused this court is not inclined to show any mercy on the accused.
23.Accused is sentenced to undergo simple imprisonment for a period of six months and sentenced to pay fine of Rs.11,00,000/- out of which the total amount is ordered to be given to the complainant towards compensation under section 357 of Cr.P.C, within one month from the date of this judgment, in case of default, accused shall undergo simple imprisonment for a period of one month. Accused is informed of his right to prefer appeal on this judgment.
Typed to my Dictation by the stenographer Grade-III, corrected and
pronounced by me in open court, this the 27 th day of August, 2024.
Sd/- Sri K.V.V.Satyanarayana,
Additional Civil Judge (Junior Division),
Gurazala.
APPENDIX OF EVIDENCE
Witnesses Examined
For Prosecution: For Defence:
PW.1- Andugula Ashok KumarDW.1- G.Srinivasa Rao
PW.2- Ambati Papa Rao
Documents Marked
For Prosecution:
Ex.P1- Cheque, dated:23-02-2019 issued by the Accused for Rs.7,50,000/- drawn on the bank of S.B.I. High Court of Telangana. Johnsi Bazar. Hyderabad Branch.
Ex.P2- Counter foil, dated:26-03-2019.
Ex.P3- Cheque return memo dated 26-03-2019.
Ex.P4- Office copy of legal notice, date:28-03-2019.
Ex.P5- is the acknowledgment card.
Ex.P6- is the Original Promissory note dated: 07-08-2016
For Defence:
Ex.D.1:Roc.No.346/PIO/JUDL/RTI/2022,dt.26-9-2022/issued by SPIO (Judicial) APHC. Ex.D.2: Xerox copy of Letter to Deputy Registrar cum Drawing Officer, Hon'ble APHC,dt.2-3-2023, Ex.D.3: Certificate issued by Deputy Registrar cum Drawing and disbursing officer, Hon'ble High Court of Andhra Pradesh, Amaravathi dt: 21-3-2023. Ex.D.4: Acknowledgment of request letter by the accused and addressed to the
Hon'ble Registrar (Vigilance), APHC, AMARAVATHI, dt.25-3-2023.
Ex.D.5: Certificate issued by Deputy Registrar cum Drawing and disbursing officer, Hon'ble High Court of Andhra Pradesh, Amaravathi dt. 1-4-2023.
Sd/- Sri K.V.V.Satyanarayana,
Additional Civil Judge (Junior Division),
Gurazala.
// True Copy //
ACJ (JD), GZL
FORM No.72
CALENDAR AND JUDGMENT
Calendar of case tried by the Additional Civil Judge( Junior Division) Court :: Gurazala
Judgment in C.C.No.312/2019
Date of:
Date of Report ofApprehensionRelease onCommence-Closure ofSentence or Offenceremand/41-A complainantof accusedbailment of trialtrialorder Cr.P.C Notice 23-02-201928-03-2019- -- -25-05-202204-09-202327-08-2024
Between:-
Andugula Ashok Kumar, S/o.Saiman, Age 45 Years, R/o.Gurazala Village and Mandal, Guntur District . . . Complainant
AND
Gidutoori Srinivasa Rao, S/o.Babu Rao, Age 43 Years, Copyist in Work review Section, First Floor in High Court, Nalapadu, Amaravathi, Guntur District . . . Accused
Crime Number- -
OffenceUnder Sec.138 of N.I Act
Plea of AccusedNot guilty
Found guilty for the offence punishable under Sec.138 of Finding of the Court N.I Act
Reasons for delay- - - Judgment: In the result the accused is found guilty for the offence punishable under Sec.138 of Negotiable Instruments Act. Accordingly, the accused is convicted for the same under Sec.255(2) and (3) Cr.P.C.
Sentence: Accused is sentenced to undergo simple imprisonment for a period of six months and sentenced to pay fine of Rs.11,00,000/- out of which the total amount is ordered to be given to the complainant towards compensation under section 357 of Cr.P.C, within one month from the date of this judgment, in case of default, accused shall undergo simple imprisonment for a period of one month. Accused is informed of his right to prefer appeal on this judgment.
Sd/- Sri K.V.V.Satyanarayana,
ADDITIONAL CIVIL JUDGE(JUNIOR DIVISION),GURAZALA.
Copy submitted to : 1)The Hon’ble Chief Judicial Magistrate-Cum-Principal Senior Civil Judge, Guntur.
Note:
01. The accused has not paid the total fine amount of Rs.11,00,000/- today.
02. As per the orders in Crl.M.P.No.1199/2024, dt.27-08-2024, the accused is released on interim bail till 26-09-2024 on his execution of personal bond for
Rs.10,000/- with two sureties for a like sum each, hence accused is released.
// True Copy //
ACJ (JD), GZL